There are credit cards that are advertised as a no fee secured credit card. These are cards that typically have a low annual percentage rate or APR, which is the stated interest, plus any additional fees. In the case of a no fee secured card, such items as annual fees, monthly maintenance fees, ATM charges, etc. are either waived, suspended or eliminated.

Do No Fee Secured Credit Cards Exist?

It is a difficult question to answer based on the definition of no fee. You may encounter an offer for a secured card that does not charge the typically fees that other secured cards charge. However, this no fee approach can be a guise for a higher APR or 0 percent APR that increases dramatically in a period of six months to a year.

Do Your Homework before Accepting an Offer

The other issue that may arise is that of hidden penalty fees that are written into the credit card agreement. These fees will appear as something that you will only encounter if a late payment situation arises but may result in a retroactive charge on all outstanding balances, both past and future. Read the terms of every offer you are considering that offers a no fee arrangement.

The question of whether or not a secured no fee credit card exists is more a question of what fees and charges are acceptable and if the terms of the offer you sign today going to be the same terms in the future. Read all language carefully and ask questions in order to legitimize any claim of no fees.